Why The Oversupply of Containers is Affecting Market Prices

According to Container xChange, there is an oversupply of containers due to a series of market disruptions. When the pandemic began in early 2020, there was a swift rise in demand for shipping containers. This quickly caused congestion at ports, which held up the container capacity. Directly after, the panic ordering began. Shipping containers were ordered at record levels, which resulted in the oversupply we’re seeing now. Here’s a few reasons why.


Shipping Container Oversupply

“The oversupply situation does not come as a surprise because the average container prices and leasing rates have been declining globally since Sept-Oct 2021,” said Christian Roeloffs, CEO of Container xChange. Freight rates have lowered an average of 20% since the beginning of 2022. We should continue to see a gradual decrease. However, there will not be a massive lowering of rates because of the underlying disruptions in the supply chain. And then there’s the giant elephant in every room – inflation. The stress from rising inflation is building on the worldwide economy and keeping prices higher.

Looming Inflation Problems

Inflation, along with the effects of COVID lockdowns, are causing disruption that will continue to affect supply, demand, and fluctuating prices. Hopefully, these disruptions will phase out, and normal balance will return. Recent data suggest an excess of 6 million TUEs of capacity in the global container fleet. Container xChange has determined that this oversupply will lead to more demand for depot space. Since depot space is already limited, this could create more challenges. But this isn’t all bad news. In fact, ocean freight demand is expected to multiply global GDP.


Throughout all these recent changes, All Points Container Line is looking out for you. We will always get your goods where they need to go. You can count on that.